Re-examined proposal for a Council Regulation (EC) on budget line B7-6210 on North-South cooperation in the campaign against drugs and drug addiction
Date: 1997-05-23
Institutions: European Commission
Subjects: North-South relations, drug addiction, drug traffic, fight against crime, narcotic

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  23.05.1997 
COM(97)  190 final 

95/0167 (SYN> 

Re-examined  proposal  for  a 

COUNCIL  REGULATION  (EQ 

ON BUDGET LINE B7-6210 ON NORTH SOUTH COOPERATION 
IN THE CAMPAIGN AGAINST DRUGS AND DRUG ADDICTION 

(presented  by the Commission pursuant to  Article  Î89 c (d) 
of the EC  Treaty) 

EXPLANATORY  MEMORANDUM 

In conformity  with article  189 C, the Commission  accepts the following  amendments 
to the Council's  common position that  were voted by the European  Parliament  at the 
2nd reading on the  13 of March 1997. 

Amendment 1: 
"Whereas  one  of  the  most  important  prerequisites  in  the  fight  against  drugs  is  that 
poverty in the south should be drastically reduced and that people should have a legal 
alternative to the cultivation of illegal products." 
The Commission is of the view that alternative development programs will have more 
chances  to  be  successful  if  the  economy  of  the  countries  facing  illicit  cultivation 
diversifies  and  if  poverty  is  reduced  because  one  of  the main  reasons  that  lead  poor 
individuals peasants to cultivate coca or opium is that they have no other alternative to 
earn money. 

Amendment 2: 
Delete: "Whereas  a financial reference  amount, within  the meaning of point  2 of  the 
Declaration by the European Parliament, the Council and the Commission  of 6 March 
1995  (1)  is  included  in  this  Regulation  for  the  period  1998-2000,  without  thereby 
affecting  the powers of the budgetary authority as they are defined by the Treaty": 
The Commission is of the view that the amount allocated to the budget line is the sole 
responsibility of the Budgetary Authority. 

Amendment 3: 
"The  Commission  will  seek  to  use  its  influence  with  the  international  donors  and 
financial  institutions  (IMF,  World  Bank,  etc)  to  avoid  contradictions  between  their 
policies  and  the  objectives  of  national  drug  control  policies":  The  idea  behind  this 
amendment  is  to  make  sure  that  the  policies  of  the  Bretton  Woods  institutions  arc 
compatible  and  do  not  contradict  with  the  objectives  of  the  fight  against  drugs. 
Because the Commission  generally  speaking has not the status of  a member of  those 
I.F.I, it is more appropriate to refer to "the E.C (European Community). 

Amendment 4: 
"Criteria will be established for evaluating the progress of each initiative supported by 
the Community. These criteria, which will be mutually  acceptable to the Community 
and partner governments  or organizations, will be developed  in a process of dialogue 
before Community financial  assistance begins": 
This amendment cannot be accepted because the Commission should maintain its own 
criteria to assess the way the programs that it has financed  have been implemented. 

A 

Amendment 5: 
"Promotion  of  pilot  alternative  development  projects  including  projects  that  seek 
alternative production which can take advantage of trade preferences,  particularly  for 
the  benefit  of  small  independent  producers  of  raw  materials  for  illegal  drugs.  Pilot 
alternative  development  projects  will  be  subject  to  the  same  requirements  as  other 
Community  development  projects  (in  terms of  feasibility  studies  and  participation  of 
local people and target  groups in identifying  planning and carrying out operations and 
should  be  conceived  as  a  process  by  which  the  production  of  illicit  drug  cops  is 
eventually  both  combated  and  eliminated  through  appropriate  rural  development 
measures in the context of sustainable national economic growth. These projects  shall 
comprise  social  and economic  measures  which take into  account  factors  contributing 
to  illicit  production  as  well  as  measures  which  may  facilitate  improved  use  of 
commercial  preferences.  In  this  context  there  will  be  systematic  appraisal  of  how 
greater  use  may  be  made  of  other  Community  financial  instruments  (e.g.  the ALA^ 
and the European Development Fund to support alternative development projects": 

Alternative  development  programs  are  supported  by - the  special  regime  of  GSP 
granted to some latin american countries. The GSP contributes to the goal of replacing 
illicit activities by legal activities, either in the industrial or in the agricultural field. 
Because  of  the  limited  amount  allocated  to  the  budget  line,  it  is  useful  to  mention 
other  sources  of  financement  for  alternative  development  projects  on  a  large  scale 
such as existing budget lines for technical cooperation for example. 

Amendment 6: 
Replace "particular attention shall be paid" by "Particular emphasis will be given to: 
•  measures  to combat  the production  of  and  trade  in heroin, cocaine  and  dangerous 

• 

synthetic drugs 
the  participation  of  local  people  and  target  groups  in  identifying,  planning  and 
carrying  out  operations;  special  attention  shall  be  paid  to  the  key  position  of 
women and the social and environmental implications of the measures: 

•  support  for  communities  which  have  decided  to  give  up  production  of  drugs  or 

precursors, in the form of help with the development of alternatives: 

•  measures to combat money laundering": 

The  surge  of  synthetic  drugs  must  be  properly  addressed  as  well  as  the  growing 
importance  of  money  laundering.  It  is  important  to  associate  the  people  concerned 
with  illegal  crop  cultivation  to  the  definition  and  implementation  of  alternative 
development projects. 

Amendment 7: 
"The  Community  shall  only  support  projects  where  respect  for  human  rights  is 
guaranteed": 
It  is  crucial  that  in  each  program  financed,  the  human  rights  dimension  be  properly 
addressed. 

£ 

Amendment 8: 
"The instruments to be employed in the course of the operations referred to in Articles 
3  and  4  shall  include  technical  assistance,  training  or  other  services,  supplies  and 
works.  They  shall  also  include  preliminary  studies  and  evaluation  and  monitoring 
audits, the cost of which  shall not exceed  10% of the appropriations  allocated  to this 
item by the budgetary authority in each financial year. 
Exceptionally, in the of the comprehensive evaluation due after three year, the cost 
may amount to up to 20% of those appropriations." 

Since  1987,  a  very  low  percentage  of  the  budget  line  has  been  used  for  seminars, 
feasibility  studies and assessments  of program. The provisions of the article  12 make 
it necessary to plan more allocation of funds  for external assessments of programs and 
projects  in the future,  while preserving the role of the budget line which  is to  finance 
programs. The 20% ceiling seems to be a good compromise in that respect. 

Amendment 9 : 

"Opportunities  shall be sought for  cofinancing.  in particular with the Member  States, 
with third countries or with multilateral, regional or other organizations": 

This  amendment  is  appropriate  because  it  widens  the  array  of  contributors  to 
programs financed by the EC. 

Amendment 10: 

"In order to achieve the objectives  of consistency  and complementarity  referred  to in 
the  Treaty  and  with  the  aim  of  guaranteeing  optimum  effectiveness  of  all  these 
operations  the  Commission  while  having  regard  to  the  principles  of  sound 
management  and  avoiding  excessive  administrative  costs,  shall  take  all  coordination 
measures  necessary  to  maximize  overall  efficiency,  including  in  particular":  This 
amendment is the statement of a principle of good management of programs. 

Amendment 11: 

"All necessary steps shall be taken to ensure that aid is properly evaluated,  monitored 
and substantiated": 

This amendment is a statement of a principle of good management of programs. 

Amendment 12 : 
Delete:  "The  financial  reference  amount  for  the  implementation  of  this  program 
during the period  1998-2000 shall be ECU 30 million": 

The  Commission  is  of  the  view  that  this  matter  is  the  only  responsibility  of  the 
Budgetary Authority. 

3 

Amendment 13 : 

Delete: "Projects and program appraisal shall take into account the following  factors: 
•  effectiveness  and viability of operators 
•  cultural, social, gender and environmental aspects 
• 
• 

institutional development necessary to achieve project goals 
experience gained from operations of the same kind.": 

The Commission must retain some room of manoeuvre to define, for each program 
and depending on each program's characteristics, the relevant criteria of assessment. 

Amendment 14 : 

Delete:  "The  information  shall be  made  available  no  later  than  one  week  before  the 
decision is taken.": 

The Commission  is of the view that the general debate on the orientations  for  the use 
of  the budget  line at the beginning  of each year and the information  provided  by  the 
Commission  in the  PVD-ALA  committee  and  in  the  annual  report  on  the  use of  the 
budget line fully  meet the objective of transparency. 

Amendment 15 : 
Delete:  "and  of  the  recipient  and  replace  by  "  '  "  . Add  "it  may  be  extended  to" 
instead of "and": 

This amendment is the modified  proposal of the Commission (dated 06.09.1996). 

Amendment 16 : 
Replace "shall" by "should" and replace the 2nd sentence by "Exceptions will be 
allowed with the prior agreement of the competent department, in particular where the 
partners would otherwise have to bear extra or excessive costs": 

This amendment is the modified proposal of the Commission (dated 06.09.1996). 

Amendment 17 : 

Delete: "Particular attention will be given to 
• 
• 

the pursuit of cost-effectiveness  and sustainable impact in project design 
the clear definition  and monitoring of objectives  and indication of achievement  for 
all projects": 

The  principles  of  good  management  are  already  explained  in  amendment  10  and 
amendment  11 of the EP which are accepted by the Commission. Therefore there is no 
need of this additional statement. 

v 

Amendment 18 : 

Replace:  "geographically-determined  committee  competent  for  development  by  the 
Commission  shall  be  assisted  by  an  advisory  committee  made  up  of  representatives 
from  the Member  States and chaired by a representative  of the Commission, namely, 
depending on the recipient country or region. 
• 

in the case of ACP countries, the EDF Committee  set up by Article  21 of  Internal 
Agreement  91/401/EEC  on  the  financing  and  administration  of  Community  aid 
under the fourth  Lomé Convention, adopted on  16 July  1990 by the representatives 
of the Member States meeting with the council: 
in the case of the Mediterranean countries, the MED Committee set up by Article 6 
of Council Regulation (EEC) No 1762.92 of 29 June 1992 

• 

•in the case of the Asian and Latin American countries, the ALA Committee set up by 
Article  15 of Council Regulation (EEC) No 443/92 of 25 February  1992.": 

This  amendment  aims  at  coming  back  to  the  proposal  of  the  Commission  dated  30 
June 1995. 

Amendment 19 : 

Replace after  "The urgency of the matter" bv "The representative  of the  Commission 
shall  submit  to  the  Committee  a  draft  of  the  measures  to  be  taken.  The  committee 
shall deliver its opinion  on the draft,  within  a time limit which the chairman  may lav 
down according to the urgency for the matter, if necessary by taking a vote. 
The  opinion  shall  be  recorded  in  the  minutes:  in  addition  each  member  State  shall 
have the right to ask to have its position recorded in the minutes 
The Commission  shall take the utmost account of opinion delivered bv the committee. 
It shall inform  the committee of the manner in which its opinion  has been taken  into 
account." 

This amendment is the original proposal of the Commission as regards comitology 
(dated 30 June 1995). 

Amendment 20 : 

Add  : "The  joint  meeting  of  the committees  shall  deliver  an  opinion  on  the  general 
guidelines.": 

This was the original proposal of the Commission (dated 30 June 1995). 

Amendment 21 : 

Replace  "at  the  end  "  bv  Before  1 September  in  each  budget  year,  the  Commission 
shall present  a report to Parliament  and the Council  including  a list of the partners in 
cofinanced  operations  and the percentage of cofinancing.  summarizing  the  operations 

S 

financed  in  the  course  of  that  year  and  providing  a  statistical  evaluation  of  the 
implementation of this Regulation over that period. 
The report shall in particular contain information  about those with whom contracts 
have been concluded.": 

This amendment is not acceptable because by September, not all the funds  of the 
budget line are engaged. Therefore, the information  that would be provided by the 
Commission by the  1st of September of each year would not be accurate. 

Amendment 22 : 

Delete:  "The  Commission  shall  regularly  assess  operations  financed  by  the 
Community  with  a  view  to  establishing  whether  the  objectives  aimed  at  by  such 
operations  have  been  achieved  and  to  provide  guidelines  for  improving  the 
effectiveness  of  future  operations.  The  Commission  shall  submit  to  the  Committee 
referred  to in Art.  10 a summary of the assessments  made which, if  appropriate, may 
be examined by the Committee. The assessment reports shall be made available to any 
Member States requesting them. 
The  Commission  shall  inform  the  Member  States,  at  latest  one  month  after  its 
decision,  of  the  operations  and  projects  approved,  stating  their  cost  and  nature,  the 
recipient country and partners.": 

The amendments  10 and  11 of the EP already cover this issue.This is the reason why 
the Commission approves amendment 22 of the EP. 

Amendment 23 : 
Replace "terminating it" in art. 12 bv "amending it": 

The Commission shares the view of the EP that a regulation whose adoption will have 
taken  2 years  should  only be examined  three years  after  its entry  into  force  with  the 
view to amend it if there is a strong case for it but not with the view to abolish it. 

C 

RE-EXAMINED PROPOSAL FOR A 
COUNCIL REGULATION (EC) 

ON BUDGET LINE B7-6210 ON NORTH SOUTH COOPERATION 
IN THE CAMPAIGN AGAINST DRUGS AND DRUG ADDICTION 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular 
article 130w thereof, 

Having regard to the proposal from the Commission; 

Acting in accordance with the procedure laid down in Article 189c of the Treaty; 

Whereas the impact on the structures of a developing society of an economy based on 
the  production  of  drugs,  or  which  derives  a  substantial  revenue  from  them, 
undermines a country's smooth integration in to the world economy; 

Whereas  the  breakdown  of  social  structures  in  developing  countries  due  to  drug 
consumption and the related industry is detrimental to sustainable social development 
and the attainment  of  the goals of Community  Policy in the sphere of development 
cooperation as defined in Article 130u of the Treaty; 

Whereas  one  of  the  most  important  prerequisites  in  the fight against  drugs  is  that 
poverty in the south should be drastically reduced and that people should have a legal 
alternative to the cultivation of illegal products: 

Whereas institutional support should be given to those developing countries which so 
request so that they can combat drags more effectively; 

Whereas  in  a  communication  to  the  Parliament  and  to  the  Council  dated  23 June 
1994, the Commission presented its guidelines for a European plan of action on drugs 
for  1995-99, including measures at international level; 

Whereas  Parliament  stated  its  views  on  the  guidelines  in  its  Opinion  on  the 
Communication, adopted on 15 June 1995; 

Whereas  the  Fourth  ACP-EC  Convention  and  the  Cooperation,  Association  and 
Partnership  agreements  concluded  by  the  European  Community  with  developing 
countries contain clauses on cooperation to curb drug abuse and drug trafficking,  the 
monitoring of trade in precursors, chemical products and psychotropic substances and 
the  exchange  of  relevant  information,  including  measures  in  the  field  of  money 
laundering; whereas there is a relationship between campaign against drugs and drug 
addiction  and the aims of the cooperation policy pursued by the Community  and its 
developing country partners; 

^ 

Whereas  the  international  community's  strategy  to  curb  drug  abuse  and  drug 
trafficking  is based on universal accession to the Single Convention on narcotic drugs 
of  1961,  as  amended  by  the  Protocol  of  1972,  the  Convention  on  psychotropic 
substances  of  1971 and  the  International  Convention  against  illicit  traffic  in  narcotic 
drugs and psychotropic  substances  of  1988, and on the systematic  implementation  of 
those conventions at national and international level; 

Whereas the European Community  is a party of the Convention  of  1988, in particular 
by  virtue  of  Article  12 of  that  Convention,  and  has  adopted  Community  legislation 
based  on the recommendations  of the Chemical  Action Task Force  set up by the G 7 
and  the  President  of  the  Commission  in  1989, the  effectiveness  of  which  would  be 
generally enhanced by the adoption of the relevant legislation  and procedures  in other 
parts of the world; 

Whereas  effective  action  against  drugs  must  also  encompass  measures  against  the 
laundering  of  money  from  drug  trafficking,  such  as  the  adoption  of  a  suitable  legal 
framework  and appropriate mechanisms in the countries concerned; 

Whereas  human  rights  must  be  duly  respected  in  implementing  measures  under  this 
Regulation; 

Whereas  the  Member  States  of  the  European  Community  have  endorsed  the  policy 
statement  and general plan of  action adopted by the UN General Assembly  at its  17th 
special session; 

HAS ADOPTED THIS REGULATION: 

Article 1 

In  the  framework  of  its  development  cooperation  policy  and  taking  account  of  the 
harmful  effects  on development efforts  of the production, trading and consumption of 
drugs, the  Community  shall  carry  out cooperation  activities  in  the field of  drugs  and 
drag  addiction  in  developing  countries,  giving  priority  to  those  which  have 
demonstrated  political  will  at  the  hightest  level  to  solve  their  drug  problem.  The 
existence  of  such  will  may  be  demonstrated  inter  alia  by  ratification  of  the  Single 
Convention  of  1961 as amended by the Protocol  of  1972, the Convention  of  1971 and 
the  Convention  of  1988. Commitment  on  the  part  of  developing  countries  shall  take 
the form  inter alia of the implementation  of domestic legislation  against laundering of 
money generated through illicit drugs. 

Article 2 

The  assistance  provided  under  this  Regulation  shall  complement  and  reinforce 
assistance provided  under other instruments of development cooperation. 

S 

Article 3 

The Community shall give priority at the request of a partner country to supporting the 
preparation  of  a  national  drug  control  master  plan,  in  close  consultation  with  the 
United  Nations  International  Drug  Control  Programme  (UNDCP).  These  plans  will 
identify  objectives,  strategies  and  priorities  in  the  campaign  against  drugs  and  the 
related resource requirements  (including financial  requireemtns), thus establishing  an 
integrated,  multidisciplinary  and  multisectoral  approach  designed  to  maximize  the 
efficiency  of national drug control programmes and international assistance. 
The prevention of drug addiction, together with demand reduction, shall be addressed 
in  a  consistent  policy  comprising  education  and  objective  information  about  the 
consequences  of  addiction,  targeted  especially  at  young  people.  Community 
cooperation  shall  take  place  in  a  spirit  of  dialogue  reflecting  the  genuine  cultural 
differences  which affect  the perception of drug-related problems, this being crucial to 
ensure the social and political viability of drug control strategies. 

The European  Community  will seek to use its influence  with the international  donors 
and  financial  institutions  (IMF.  World  Bank,  etc)  to  avoid  contradictions  between 
their policies and the objectives of national drug control policies. 

Article 4 

Preferably  operating within the strategic framework  established by the national plans, 
the Community  shall also support  specific  operations capable of a measurable impact 
(i.e. effective  and tangible results within a time-limit set in advance) in the  following 
areas: 
- development of institutional capacity, in particular for the implementation  of: 

•  National Drug Control Master Plans by developing countries, 
•  agreements  between  the  Community  and certain  developing  countries, 
in particular to combat the diversion of chemical precursors and to curb 
money laundering, 

- demand  reduction,  in particular  through  analysis  of local patterns, the  introduction 
of  measures  to  control  trade  in  and  consumption  of  narcotics  and  psychotropoic 
substances,  treatment  and  reintegration  of  drug  addicts,  as  well  as  risk  limitation. 
These measures must be integrated into policies on health and education, development 
and combating poverty and social and economic exclusion. 

Promotion  of  pilot  alternative  development  projects  including  projects  that  seek 
alternative production  which can take advantage  of trade preferences,  particularly  for 
the  benefit  of  small  independent  producers  of  raw  materials  for  illegal  drugs.  Pilot 
alternative  development  projects  will  be  subject  to  the  same  requirements  as  other 
Community  development  projects  (in terms of  feasibility  studies  and participation  of 
local people and target  groups in identifying  planning and carrying out operations and 
should  be  conceived  as  a  process  by  which  the  production  of  illicit  drug  cops  is 
eventually  both  combated  and  eliminated  through  appropriate  rural  development 
measures in the context of sustainable national economic growth. These projects  shall 
comprise  social  and economic  measures  which  take into account  factors  contributing 
to  illicit  production  as  well  as  measures  which  may  facilitate  improved  use  of 

2) 

commercial  preferences.  In  this  context  there  will  be  systematic  appraisal  of  how 
greater  use  may  be  made  of  other  Community  financial  instruments  (e.g.  the  ALA) 
and the European Development Fund to support alternative development projects. 

Financing  of  studies, seminars  and fora  for  the exchange  of  experience  in the  above 
fields. 
"Particular emphasis will be given to: 
•  measures  to combat  the production  of  and trade  in heroin, cocaine  and  dangerous 

• 

synthetic drugs 
the  participation  of  local  people  and  target  groups  in  identifying,  planning  and 
carrying  out  operations;  special  attention  shall  be  paid  to  the  key  position  of 
women and the social and environmental implications of the measures: 

•  support  for  communities  which  have  decided  to  give  up  production  of  drugs  or 

precursors, in the form of help with the development of alternatives: 

•  measures to combat money laundering 

The  Community  shall  only  support  projects  where  respect  for  human  rights  is 
guaranteed. 

Article 5 

The cooperation  partners  eligible  of  financial  support  under this  Regulation  shall  be 
regional  and  international  organizations,  in  particular  UNDCP,  local-  and  Member 
local 
State-based  non-governmental  organizations,  national,  provincial  and 
government departments and agencies, community-based  organizations, institutes and 
public and private operators. 

Article 6 

1.  The  instruments  to  be  employed  in  the  course  of  the  operations  referred  to  in 
Articles  3 and 4 shall include  studies, technical  assistance, training  or other  services, 
supplies  and works, along with  audits and evaluation  and monitoring  missions. They 
shall  also  include  preliminary  studies  and evaluation  and  monitoring  audits, the  cost 
of  which  shall  not  exceed  10%  of  the  appropriations  allocated  to  this  item  bv  the 
budgetary authority in each financial year. 
Exceptionnally, in  the  of  the comprehensive  evaluation  due  after  three year, the  cost 
may amount to up to 20% of those appropriations. 

2.  According  to  the  needs  of  the  operations  concerned,  Community  financing  may 
cover  both  capital  investment,  other  than  the  purchase  of  real  estate,  and  operation 
costs  in  foreign  or  local  currency.  However,  with  the  exception  of  training 
programmes, operating costs may normally be covered only during  the start-up phase 
and on a degressive basis. 

3.  A financial contribution  from  the partners  defined  in  Article  5 shall  be  sought  for 
each  cooperation  operation.  Their contribution  will be  requested  within  the  limits of 
the possibilities  available  ot the parties concerned  and depending  of the nature of the 
operation concerned. 

-/ 

4. A financial contribution from the local partners, particularly in respect of operation 
costs,  shall  be  sought  as  a matter  priority  in  the  case  of  projects  intended  to  launch 
long  term  activities,  so  as  to  ensure  the  viability  of  such  projects  once  Community 
funding  comes to an end. 

5.  Opportunities  shall  be  sought  for  confinancing.  in  particular  with  the  Member 
States, with third countries or with multilateral, regional or other organizations. 

6.  The  Commission  will  ensure  that  the  Community  character  of  the  aid  provided 
under this Regulation is highlithed. 

7. In order to achieve the objective  of consistency  and complementarity  referred  to in 
the  Treaty  and  with  the  aim  of  guaranteeing  optimum  effectiveness  of  all  these 
operations,  the  Commission  while  having  regard  to  the  principles  of  sound 
management  and  avoiding  excessive  administrative  costs,  shall  take  all  coordination 
measures necessary to maximize overall efficiency,  including in particular 

a) 

b) 

a system for the systematic exchanges and analysis of information on 
operations financed  and those which the community and the Member States 
propose to finance; 
on-the-spot coordination of the implementation of operations through regular 
meetings and exchange of information between  representatives of the 
Commission and of the Member States in the beneficary  country. 

8.  In  order  to  obtain  the  greatest  possible  impact  globally  and  nationally,  the 
Commission,  in liaison  with the Member States, shall take an initiative  necessary  for 
ensuring proper coordination  and close collaboration  and close collaboration with the 
beneficiary  those forming  part of the United Nations system and more specifically  the 
UNDCP. 

Article 7 

Financial  support  under  this  Regulation  shall  take  the  form  of  grants.  All  necessary 
steps  shall  be  taken  to  ensure  that  aid  is  properly  evaluated,  monitored  and 
substantiated. 

Article 8 

Annual appropriations shall be authorized by the budgetary authority within the limits 
of the financial  perspectives. 

Article 9 

1.  The  Commission  shall  be  responsible  for  appraising,  approving  and  managing 
operations  covered  by  this  Regulation  in  accordance  with  the  budgetary  and  other 
procedures  in  force,  and  in  particular  those  laid  down  in  the  Financial  Regulation 
applicable to the general budget of the European Communities. 

A/\ 

2. Decisions  relating  to grants of  more than ECU  2 million  for  individual  operations 
financed  under this Regulation  and any changes resulting in an increase of more than 
20  % in the  sum initially  approved  for  such  an operation  shall be  adopted  under  the 
procedure laid down in Article 10. 

3. The Commission  shall be authorized to approve, without recourse to the opinion of 
the  Committee  provided  for  in  Article  10, any  supplementary  commitments  needed 
for covering expected  or real costs overuns  in connection  with the operations, where 
the  overrun  of  additional  requirement  is  less  than  or  equal  to  20  %  of  the  initial 
commitment fixed by the financing  decision. 

4.  All  financing  agreements  or  contracts  concluded  under  this  Regulation  shall 
provide for the Commission  and the Court of Auditors to conduct  on-the-spot  checks 
according  to  the  usual  procedures  laid  down  by  the  Commission  under  the  rules  in 
force,  and  in  particular  those  of  the  Financial  Regulation  applicable  to  the  general 
budget of the European Communities. 

5. Where operations  are the subject  of financing agreements between  the  Community 
and  the  recipient  country,  such  agreement  shall  stipulate  that  the  payment  of  taxes, 
duties or any other charges is not to be covered by the Community. 

6.  Participation  in  invitations  to  tender  and  the  award  of  contracts  shall  be  open  on 
equal terms to natural and legal persons of the Member States, "recipient" countries. It 
may be extended to other developing countries. 

7.  Supplies  should  originate  in  the  Member  States,  the  recipient  country  or  other 
developing  countries.  Exceptions  will  be  allowed  with  the  prior  agreement  of  the 
competent department, in particular where the partners would otherwise have to bear 
extra or excessive costs. 

Article 10 

1.  The  Commission  shall  be  assisted  bv  an  advisory  committee  made  up  of 
representatives  from  the  Member  States  and  chaired  bv  a  representative  of  the 
Commission, namely, depending on the recipient country or region. 
• 

in the case of  ACP countries, the  EDF Committee  set  up by Article  21 of  Internal 
Agreement  91/401/EEC  on  the  financing  and  administration  of  Community  aid 
under the fourth  Lomé Convention, adopted on  16 July  1990 by the representatives 
of the Member States meeting with the council: 
in the case of the Mediterranean countries, the MED Committee set up bv Article 6 
of Council Regulation  (EEC) No  1762.92 of 29 June  1992 
in the case of the Asian and Latin American countries, the ALA Committee  set up 
bv Article  15 of Council Regulation (EEC) No 443/92 of 25 February  1992. 

• 

2. The representative  of the Commission  shall submit to the committee  a draft  of the 
measures  to be  taken.  The  committee  shall  deliver  its  opinion  on  the  draft,  within  a 

AZ. 

time limit which the chairman may lay down according to the urgency of the matter if 
necessary bv taking a vote. 

The  opinion  shall  be  recorded  in  the  minutes:  in  addition  each  member  State  shall 
have the right to ask to have its position recorded in the minutes 
The Commission  shall take the utmost account of opinion delivered bv the committee. 
It shall inform  the committee  of the manner in which its opinion  has been taken  into 
account. 

3. An exchange of views shall take place once a year on the basis of a presentation by 
the representative of the Commission of the general guidelines for the operations to be 
carried  out in the year ahead, in the  framework  of  a joint  meeting  of the  committees 
referred  to  in  paragraph  10.  The  joint  meeting  of  the  committees  shall  deliver  an 
opinion on the general guidelines. 

Article 11 

At  the  end  of  each  budget  year,  the  Commission  shall  present  a  report  to  the 
Parliament  and  the  Concil  summarizing  the  operations financial in  the cause  of  that 
year and evaluating the implementation  of this regulation that period. The report shall 
in  particular  contain  information  about  those  with  whom  contracts  have  been 
concluded. It shall also summarize any indépendant evaluations conducted of  specific 
operation. 

Article 12 

1. This Regulation shall enter into force on the third day following its publication in 
the Official  Journal of the European communities. 

2. Three years after this Regulation enters into force, the Commission shall submit to 
the European Parliament and the Council an overall assessment of operations financed 
by the Community under thsi Regulation together with suggestionn regarding the 
future  of this Regulation and, where necessary, proposals for amending it. 

This Regulation  shall be binding in its entirely and directly applicable in all Member 
States. 

Done at Brussels 

For the Council 
The President 

A  I 

ISSN 0254-1475 

COM(97) 190  final 

DOCUMENTS 

EN 

05  11  01 

Catalogue number  : CB-CO-97-180-EN-C 

ISBN 92-78-19080-2 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

> iy